Malaysia’s Sunway pushes ahead with RM11 billion IJM takeover despite RM2.5 billion money laundering probe
The construction group’s shares climb after the conglomerate affirms its takeover, easing investor jitters over anti-graft investigation
[KUALA LUMPUR] Malaysia’s blue-chip conglomerate Sunway said that it will press ahead with its proposed RM11 billion (S$3.5 billion) takeover of IJM Corp.
It is undeterred by a RM2.5 billion money laundering probe into the construction group that has shaken investor confidence and triggered a sharp sell-off in IJM shares.
In a filing to Bursa Malaysia on Wednesday (Jan 21) evening, Sunway sought to dismiss market speculation that the investigation by Malaysia’s anti-graft agency could derail the share-and-cash acquisition, which values IJM at slightly more than RM11 billion.
“The board of directors of Sunway wishes to clarify that the proposed offer is proceeding in accordance with the Rules on Take-Overs, Mergers and Compulsory Acquisitions issued by the Securities Commission Malaysia,” it said.
Sunway added that the takeover remains subject to shareholder approval, which will be sought at an extraordinary general meeting to be convened.
Share price rebounds
The clarification helped to steady market sentiment. IJM shares closed at RM2.64 on Thursday, rebounding 6 per cent and recovering part of the losses suffered earlier in the week. Sunway shares remained unchanged at RM5.57.
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Sunway unveiled the conditional voluntary takeover on Jan 12, proposing to acquire all 3.5 billion outstanding IJM shares at RM3.15 apiece.
The deal is aimed at combining two of Malaysia’s largest construction and property groups into a powerhouse, with a market value approaching RM50 billion.
Just days after the announcement, Malaysia’s anti-graft agency opened an investigation into IJM, identifying a senior executive and a company adviser as persons of interest in alleged money laundering involving about RM2.5 billion.
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The investigation sparked a sharp sell-off in the stock. IJM shares fell more than 9 per cent to RM2.49 from RM2.74 on Jan 13, the day trading resumed following the takeover announcement.
Over the past month, IJM’s share price has risen nearly 16 per cent, from RM2.28 on Dec 22, 2025.
Ongoing investigation
On Tuesday, Malaysian Anti-Corruption Commission (MACC) chief commissioner Azam Baki confirmed that the probe is being conducted under Section 16 of the MACC Act and Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act.
News agency Bernama reported that as part of an investigation named “Op Heart”, authorities raided four locations on Tuesday, including the office and residence of a top executive.
The investigation focuses on corporate governance, procurement practices and an estimated RM2.5 billion in foreign assets.
Authorities have also frozen 55 bank accounts belonging to individuals and related companies, with balances totalling about RM15.8 million, as the probe continues.
IJM disclosed on Monday that officers from MACC and the Inland Revenue Board were present at its offices to obtain information as part of the authorities’ process.
A day later, the company denied involvement in any money-laundering activities or investigation by UK authorities, following MACC’s probe into alleged irregularities in a RM2.5 billion scheme.
The company said that neither it nor its UK associates were aware of any Serious Fraud Office inquiry, and dismissed reports suggesting otherwise as inaccurate.
IJM clarified that the individual referred to as a “company adviser” had only provided limited advisory services on specific transactions. The firm added that chairman Krishnan Tan had met MACC officers and that IJM was cooperating fully, with other staff assisting as required.
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